Absa Student Loan Review 2023

The Absa Student Loan is a loan for the purpose of studying, and individuals can borrow between R15,000.00 and R250,000.00. […]

Absa Student Loan

The Absa Student Loan is a loan for the purpose of studying, and individuals can borrow between R15,000.00 and R250,000.00. Absa Student Loan allows student loan account holders to pay only interest for the first 12 months. 13 months after taking out the loan, loan account holders can begin making repayments to the Absa Student Loan account.

The Absa Student Loan is available to those earning R3,000.00 or more per month and permanently residing in South Africa. The loan, however, can be taken out in the name of a parent, a sponsor, a guardian, or an income-earning student.

A successful applicant is awarded funding to cover all of their educational expenses. This implies that funds will be available for accommodation, tuition, and other costs. 

Absa Student Loans are available to both full-time and part-time students. However, accommodation funding is only available to full-time students who do not live with their families.

The Absa Student Loan is only meant to cover one year’s tuition and related expenses, it must be reapplied for the following year. Reapplications are subject to approval, the grades from the previous year will be critical in determining whether or not the loan will be granted.

Absa student loan must be repaid at some point, Absa provides loan account holders with the option of insuring themselves with the Absa Credit Protection plan. The Absa credit protection plan covers death, disability, critical illness, terminal illness, and income loss.

How does the Absa Student Loan work? 

To apply for a student loan from Absa, you must first fill out an application and attach all the necessary documents and information. Application forms are available at any Absa branch in South Africa, as well as on the Absa website and mobile app.

Undergraduate and postgraduate students studying at a registered institution in South Africa are eligible for the loan. Furthermore, both part-time and full-time students are eligible for the loan. Each student finance option has its own set of requirements. As a result, you must have the following documents in order for your application to be considered:

Full-time students

  • A sponsor or guardian who earns R3000.00 or more per month is required.
  • Obtain proof of income from the designated guardian or sponsor.
  • Acceptance letter from a SAQA-approved university, a TVET (Technical Vocational Education and Training) college, or online courses recognized by the US Department of Education or the UK Government of Higher Education.
  • At the time of application, you must provide proof of residence that is no more than three months old.
  • Bank statements or payslips from the previous three months.
  • A valid South African identification book or smart card is required.
  • For second or subsequent years of study, proof of previous year’s academic results or proof of previous year’s academic results.

Part-time students 

  • Must have a valid South African ID book or smart card. 
  • Must be full time employed. 
  • Have proof of income that can be a bank statement or payslips. 
  • Must earn an income of at least R3000.00 or more. 
  • Acceptance letter from a SAQA(South African Qualification Authority) accredited institution or from a TVET (Technical Vocational Education and Training) college or online courses accredited by the US Dependent of Education or the UK Government of higher education. 
  • proof of the previous year’s academic results for second or subsequent years of study. 

When making an application, it is obvious from the above information that the applicant must have a parent or guarantor who earns more than R3000.00 per month to apply for the loan. Part-time students, on the other hand, will need to work to qualify for the loan.

When approved, the loan will be used to pay for tuition and other educational expenses. As per the invoices provided to Absa, the funds will be deposited directly to the chosen recipients. When it comes to disbursing loan cash, only well-known institutions will be considered.

The loan amount will have to be repaid using one of the offered repayment options. The first alternative is to repay the loan in full, including both principal and interest, immediately after taking out the loan through monthly instalments. The second option is to pay interest for the first 12 months, and then make capital and interest payments thereafter.

Advantages of the Absa Student Loan 

  • The loan amount available is substantial, starting at R15,000.00.
  • Those with a good credit score can acquire loans with lower interest rates.
  • Before repaying the capital, one might choose to pay interest for the first 12 months.
  • Credit protection plans, which cover a variety of incidents, can be used to protect the loan.
  • The loan is available to undergraduate and graduate students.
  • Part-time and full-time students can apply for the loan.
  • The loan amount covers the entire set of fees associated with a student’s education. 

Disadvantages of the Absa Student Loan 

  • Interest can increase from year to year for those that will be taking multiple student loans. 
  • There is no accommodation financing for those studying part-time. 

Absa Student Loan Requirements

  • Must earn at least R3,000.00 per month. (The loan can have a guarantor)
  • Be over the age of 18 at the time of application.
  • Proof of residential address such as a municipal or rates bill
  • Your last three months’ payslips or bank statements
  • Proof of study in the form of a final letter of acceptance or proof of registration
  • Proof of course costs for the year of study (invoices/statements); for
    • Tuition fees
    • Accommodation for full-time students not living with parents or relatives
    • Text books
    • Study-related technological devices

Conclusion 

If you want to pursue a university education in South Africa, you should look into the Absa Student Loan. The loan has several advantages and can be applied for multiple times till you complete your tertiary program. If you are a capable student, you will be financed. Nevertheless, the loan is also approved depending on other considerations such as credit rating, credit behaviour, and financial circumstances.


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